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Internet Edition, August 29, 2007, Page 1


Gazprom, the Russian gas giant accused of mixing politics with energy supply, has hired an Omnicom trio—Gavin Anderson, Ketchum and GPlus—to improve its image in the west.

The world’s largest gas company, which was the former Soviet Gas Ministry, has cut supplies to Poland, Ukraine, Estonia and Belarus over “pricing issues” during the past 18 months.

Those disputes have western European countries questioning Russia’s role as a reliable energy partner.

The firms replace a WPP Group team that included Hill & Knowlton and Burson-Marsteller CEO Mark Penn’s polling firm of Penn Schoen & Berland Assocs.

Ken Cronin, managing director of GA, told Moscow Times that the new PR team began work for Gazprom mid-June.

Ketchum and GPlus have been working to burnish the image of the government of Russian President Vladimir Putin. That work initiated as an effort to bolster St. Petersburg’s role as host of the `06 G8 summit.


Aon Corp., the $9B reinsurance giant that competes with Marsh & McLennan, has selected GolinHarris as its initial global agency of record.

Phil Clement, global chief marketing & communications officer, told O’Dwyer’s that he “cast a wide net for PR companies to participate in the RFP process.”

With operations in 120 countries, Clement said it’s vital to “communicate our messages about abating risk and building the best team approach globally.”

The firm needs to be “engaged in conversations with external stakeholders and the media in every corner of the globe,” he said.

Clement cited topics such as flow of capital, trade credit, terrorism, energy, environmental sustainability, pensions and employee compensation.”

GH/Chicago handles the account, supported by operations in the U.K., Netherlands and Australia.

Chicago-based Aon lost 176 staffers in the attack on the World Trade Center.

Las Vegas ad/PR firm R&R Partners has picked up Nevada's tourism PR account following a four firm RFP process. The 20-month contract with the Nevada Commission on Tourism was awarded after a four-month review and is worth $409K to the firm. R&R beat out two Reno-based firms, RKPR and Mass Media, and Charles Ryan Associates of West Virginia.

EVP Kathy Detwiler directs R&R's PR practice.


Edelman is handling Dubai World as the holding company for that emirate is shelling out $5B for a 9.5 percent stake in Kirk Kerkorian’s MGM Mirage.
The 90-year-old billionaire will control a 52 percent stake in MGM following the cash infusion by the Persian Gulf state.

The deal makes DW a 50 percent owner of MGM’s City Center project, a 76-acre development in Las Vegas set to open in `09 with upscale hotels, retailers and properties.

DW can purchase up to 20 percent of MGM, which controls a third of the Las Vegas Strip and half of the city’s hotel space. Its properties include Bellagio, Mandalay bay, Mirage, New York New York, Monte Carlo and Circus Circus.

Gambling is illegal in Dubai, which made an ill-fated play for control of U.S. ports/terminals last year.


Terry Fahn, a senior executive at Sitrick and Co., has left for the VP/comms. slot at Dick Clark Productions in Los Angeles.

DCP was recently acquired from Mosaic Media Group in a $175M deal by RedZone Capital and Six Flags Inc. Terry Bateman, CEO of DCP, noted Fahn has worked with RedZone execs in the past and has known Six Flags chairman Dan Snyder for years.

DCP, which is locating to a new space in Santa Monica, produces the American Music Awards, Golden Globes, “So You Think You Can Dance,” and “Dick Clark’s New Year’s Rockin’ Eve.”

Prior to Sitrick, Fahn practiced law, including entertainment disputes, at Christensen, Miller, Fink, Jacobs, Glaser, Weil & Shapiro.


This newsletter has posed a series of questions to the six candidates who have been nominated for national PR Society board and officer posts-Mike Cherenson, chair-elect; Rosanna Fiske, treasurer; Mary Barber, secretary; Kathy Hubbell, N. Pacific director; Phil Tate, S.E. director, and Dave Imre, director-at-large.

Other accredited members have until Sept. 20 to file petitions that they will run against any of these candidates during the Assembly on Oct. 20 in Philadelphia.

Society leaders say that PRS sets standards not only for members but for the entire industry and that PRS is "the acknowledged brand of PR excellence."

(Continued on page 7)

Internet Edition, August 29, 2007, Page 2


The Software & Information Industry Assn., Washington, D.C., announced the first settlement in its "Corporate Content Anti-Piracy Program"-a $300,000 agreement to settle copyright infringement claims against Knowledge Networks, San Francisco.

The firm's marketing group had been distributing "press packets" internally to certain employees on a regular basis. The packets sometimes included, "without authorization or license, copyrighted articles owned by SIAA members such as the Associated Press, Reed Elsevier, and United Press International," said the SIIA.

It learned of the infringement through a confidential tip and confirmed the tip via an investigation. The tipster is receiving $6,000 under the SIIA reward program.
Knowledge Networks expressed regret at the copying and promised to avoid any recurrence.

A statement from KN said: "Knowledge Networks disseminated copies of relevant newspaper and magazine articles in the good faith belief that it was lawful to do so.

We now understand that practice may violate the copyright rights of those publications. We regret that those violations may have occurred and we are pleased that this matter has now been resolved."

KN is taking "remedial steps" including sending staff to SIIA's Certified Content Rights Manager course to learn about compliance and meeting with the Copyright Clearance Center about content licensing.

SIIA pursues copyright infringement of members' content within organizations. This content includes text-based publications like articles in newspapers, magazines and newsletters, books, and also online works.

"As shown by cases like this one, piracy can represent a significant problem for content companies," the SIIA said.

Keith Kupferschmid, SVP of intellectual property policy & enforcement at SIIA, said: "Sooner or later, companies that pirate content are going to get caught. That's when they discover that their choice-which they thought would cut expenses-has ended up as a very costly business decision."

Recently, the SIIA reached a $205,000 settlement in an eBay software piracy case.

SIIA offers rewards ranging from $500 to $1 million for individuals who report infringement by a corporation or other organization.

Sources may contact the SIIA hotline at 800/388-7478 or use the SIIA Piracy Report Form at

More than 550 software and information companies are members of SIIA, the principal trade association for the software and digital content industry.

Crosby-Volmer Int’l Communications won a three-way shootout for energy drink maker Living Essentials’ PR account.

Living Essentials, based in Novi, Mich. produces the 5-Hour Energy Drink brand.
Washington, D.C.-based C-V beat CKPR and Euro RSCG Magnet for the work. Billings are reported in the $500K range.


The mortgage-sector woes are keeping financial PR firms busy as lenders and investors reorganize, sell assets, and pursue deals to limit damage.

Kekst and Co. is handling media relations efforts for at least two companies struggling through the financial firestorm in the mortgage sector.

Kekst is bolstering communications for Luminent Mortgage Capital, the struggling mortgage company is selling a 51 percent majority stake to Arco Capital to improve its liquidity. The San Francisco Chronicle reported that Arco is getting control of Luminent for “pennies on the dollar.”

Kekst is also handling media relations for KKR Financial, the affiliate of private equity firm Kohlberg Kravis Roberts that said last week it would be getting $500 million in cash from selling shares to several banks to offset residential mortgage losses.

Other mortgage-sector companies are also moving to raise cash. Santa Fe-based Thornburg Mortgage Inc. this week sold $20.5 billion in bonds to pay down debt. That company uses Cushman/Amberg Communications to support its in-house team as agency of record.

PR firms are also involved in other aspects of the mortgage crush.

Joele Frank, Wilkinson Brimmer Katcher, for instance, is helping investment house Lone Star make its case to abort a $400M takeover of Accredited Home Lenders Holding Co., which has Andrew Edson & Assocs. as its agency of record.


The Recreational Boating & Fishing Foundation, a government-backed non-profit, is trolling for a firm to handle its $180K/year PR account.

The group, which is working to reverse a slide and changes among the demographic of water sportsmen, is eying a widespread media outreach and PR effort to back its “Take Me Fishing” advertising campaign created by Dallas-based The Richards Group last year.

The RBFF wants to stress the familial, social, health and other benefits of recreational boating and fishing. It expects to tap a firm for the $15K/month effort by mid-September. Proposals were due Aug. 24.

The group is federally funded and run by a board of directors representing the outdoor industry, public officials, tourism entities, and educators.


Jano Cabrera has moved into the issues and advocacy practice in Burson-Marsteller’s D.C. office.

As managing director, the 10-year political communications veteran reports to Josh Gottheimer, global chair of B-M’s PA practice and executive VP-worldwide. Gottheimer, speechwriter for former President Clinton, joined B-M from Ford Motor in `06.

Cabrera was deputy national spokesperson for Al Gore and comms. director at the Democratic National Committee. He was national spokesman for former Democrat Joe Lieberman’s ill-fated presidential run.

In `05, Cabrera traveled to Iraq to work with the National Democratic Institute in Baghdad on that country’s constitution.

Internet Edition, August 29, 2007, Page 3


Meredith Corp. is launching a new daytime lifestyle show, Better TV, in September and is looking for guests across various genres. The nationally syndicated program is looking for authors, experts, celebrities, chefs and entertainers to appear as studio guests or in segments.

Meredith said the show targets women 25-54 with content focusing on family, home and life. Fourteen markets will include the program's launch, including Portland, Phoenix and Hartford. It will also air on the broadband network and be cross-promoted by Meredith magazines like Better Homes and Gardens, Family Circle, and Ladies' Home Journal.

Marianne Mancusi handles booking at [email protected] or 212/499-2295.


Almar Latour becomes managing editor of the Wall Street Journal Online on Sept. 5.

He takes over for Bill Grueskin, who was named deputy managing editor of the Wall Street Journal.

Latour is bureau chief of the technology group in New York. The move is the latest effort to integrate the print and online outlets.

The Dutchman started his Dow Jones career as an intern in Brussels for the European WSJ. He moved to NYC in ’03 to cover phone companies, and assumed his current post in '05.


Time Inc. has revamped the newly forged digital operation of Southern Progress, which publishes titles like Southern Living, Southern Accents, Cottage Living, Coastal Living, Sunset and Cooking Light.

Jim Sexton, who was senior VP at Scripps Network's interactive brands unit, is now senior VP and editorial director of SPC Digital.

The Birmingham-based Sexton also is responsible for SPC's just launched and the upcoming

Steve Zales, CEO of Inform Technologies and a former general manager of ESPN's Internet Group, has been named senior VP and GM.

Dane Sorensen, a consultant to the SP sites, takes the marketing director post, in charge of brand and business development. He is a veteran of Land's End.


Bolshoye Radio, which distributed the BBC's FM broadcast in Russia, has tuned out the British news service, dismissing it as "foreign propaganda."

The Beeb's Russian-language station is now only available on medium and short-wave radio broadcasts.

The hand of Russian President Vladimir Putin is seen in the move to crack down on the BBC.

Relations between Britain and Russia have deteriorated, and Putin has used Russia's growing energy wealth to mount a more muscular diplomatic approach to the west.

The BBC station is to be replaced with original programming expected to be more in tune with Putin.


Bob Grant, who was fired from New York's WABC-AM in '95 for a comment about the airplane crash that killed former Commerce Secretary Ron Brown, has returned to the station to handle the 8-10 p.m. time slot.

The 78-year-old talk show host is credited for being a pioneer of conservative radio programming.

Grant did "fill-in" duties at WABC after officially retiring from WOR-AM in '06 after a ten-year run.

He was fired by Walt Disney Co., which sold WABC to Citadel Broadcasting this year. Image-conscious Disney faced pressure after Grant said following news reports about a person surviving the plane crash that he had a hunch Brown survived, but he was a "pessimist at heart."

Grant said he didn't mean to hurt anybody with the remark, and it was no worse than other things that he had said. He told the Daily News that if "some sicko wants to dredge it up," he will deal with the Brown controversy.


BusinessWeek said it will launch a monthly regional edition for Chicago in November.

Written and edited in the magazine's Chicago bureau and focused on dealings in the Windy City, BusinessWeek Chicago will be led by Michael Arndt, a senior correspondent in the bureau serving as editor of BWC.

The debut issue will have a controlled circulation of 60,000 and will be sent to a selected list of BW subscribers and "key decision makers" in the Chicago area.


Viacom's MTV Networks and RealNetworks have formed Rhapsody America to give Apple's iTunes a run for its money in the digital music space.

MTV will contribute video content and subscribers to its Urge music service to the venture.

It also will heavily promote RA to its cable audience as the "music service of choice." That effort kicks off at MTV's marquee event, the Video Music Awards, which airs live from Las Vegas on Sept. 9.

Rhapsody had been charging users a flat monthly fee of $12.99 for unlimited tunes. RA's pricing has not been announced.

Verizon Communications and U.K.'s Vodaphone are partners of RA. They will supply a mobile distribution platform.

Rob Glaser, CEO of RealNetworks, believes the new venture represents a "sea-change in the digital music market."

He promises to make RA the "premier digital music service" that delivers tunes to users "whenever and wherever they want."

RA will have offices in New York, Seattle and San Francisco.

Yahoo! has named Jim Schinella senior VP-corporate partnerships. He had been global VP-business development for mobile and broadband.

(Media news continued on next page)

Internet Edition, August 29, 2007, Page 4


Most young Americans are happy with their lives and feel good about the future and technology is a big part of that satisfaction and optimism, according to a study by The Associated Press and MTV.

Sixty-five percent of young people aged 13-24 said they were happy, a figure that carries a larger percentage of whites (72 percent) compared with blacks (56 percent) and Hispanics (51 percent).

Less than half (44%) of the young respondents cited religion and spirituality as an integral part of their overall happiness.

So what causes their happiness? Half of the young people polled said the Internet alone makes them smile and nearly the same number said they never turn their cellphones off.

Many said they would be more stressed out without technology.

The AP and MTV poll noted that money and its relationship to the happiness of young people "is a complicated issue."

Many young people cited financial woes as a source of unhappiness, but almost none cited money as a source of happiness.

Seventy percent said they want to be rich and half of that group think it's "at least somewhat likely." Only 29 percent said they want to be famous.

MTV and the AP worked with D.C.-based Social Technologies and Knowledge Networks.

Interviews of 1,280 young people were conducted in late April for the study.


Walt Disney's ESPN unit has purchased rugby site,, from Emap in advance of the Ruby World Cup.

The move follows its purchase of Cricinfo, a cricket site, by ESPN in June.

ESPN already owns, which gives it coverage of the "top three sports" in many international markets, according to Lynne Frank, managing director of ESPN Europe, Middle East and Africa.

ESPN has the rights to air the '07 and '11 Rugby World Cups in Latin America.
Disney’s ABC News, meanwhile, dropped about ten graphics staffers in Washington as president David Westin mounts his program of redeploying assets to digital. The firm has shifted graphics production to N.Y.


Kerry Stackpole, executive director of the Specialized Information Publishers Assn., has resigned after a 10-month stint.

The announcement was made in SIPA's Hotline newsletter. The resignation is for "personal reasons."

Patti Wysocki, former executive secretary of the group, is filling in on a part-time basis to assure that SIPA meetings and events go off without a hitch.

Wayne Cooper, of Greenhaven Partners, is head of the search team that expects to find Stackpole's replacement by the end of the year.


Vermont Senator Bernie Sanders and filmmaker Robert Greenwald have launched an online campaign to encourage TV broadcasters not to follow the lead of Fox News, which they believe is agitating for an invasion of Iran.

Fox, according to Sanders, is a "megaphone" for President Bush's policies and a "propaganda machine" for the Republican party.

Sanders and Greenwald want people to sign a letter addressed to ABC, CBS, NBC, MSBNC and CNN that is posted on the site.

It includes a quote from CNN's Christiane Amanpour, who claims that her network leading up to the Iraq invasion, was "intimidated by the Administration and its foot soldiers at Fox News."

The letter accuses the News Corp. unit of "beating the drums for war with Iran." It says the networks have a "sacred responsibility to the American people to provide accurate and reliable information so we can best make the decisions which affect our lives."

Greenwald is director of "Outfoxed: Rupert Murdoch's War on Journalism." Sanders is a Socialist who caucuses with Democrats. In February, he introduced a resolution "expressing the sense of Congress that the President should not initiate military action against Iran without first obtaining authorization from Congress."

The foxattacks site is backed by a coalition of liberal groups including the Sierra Club,, Media Matters, Free Press and

It calls an invasion of Iran "bananas," noting that the country is bigger than a combined Afghanistan and Iraq. There are also 66M Iranians compared to 59M people in Iraq and Afghanistan.

People _______________________

Music magazine Paste has brought in Atlanta Journal-Constitution pop music critic Nick Marino to serve as managing editor.

Marino's byline has appeared in publications including Entertainment Weekly, Spin, and the Boston Globe.

Paste, based in Decatur, Ga., has also promoted music editor Jason Killingsworth to deputy editor. He recently penned cover stories on Christopher Guest and The White Stripes.

Briefs ____________________________

New York-based 5W PR is cheering its debut at #153 on the 2007 Inc. 500 list of fastest-growing private companies in America.

The firm was founded in December 2002. "Thus far, this is the proudest moment for 5W PR since the creation of the firm," said Ronn Torossian, president/CEO.

Tribune Co. shareholders signed off on the $8.2B deal to take the company private under real estate giant Sam Zell.

Dow Jones noted that once the deal is in place Tribune will be roughly $13B in debt in the midst of a tight credit market.

Internet Edition, August 29, 2007, Page 5


Burson-Marsteller CEO Mark Penn is the next Karl Rove, according to the current issue of The Economist.

Penn, who doubles as Hillary Clinton's chief strategist, "stands heads and shoulders" above all political advisers.

He is touted as a "compelling figure in his own right-a polling genius" who is responsible for crafting Clinton's political image and handling crisis management. "Little happens in Hillaryland without Mr. Penn’s say-so," according to the "Lexington" column.

Both Rove and Penn are "masters of demographic trends and poll data." Both are long-time aides to their respective bosses. The biggest difference is that Penn believes elections are won by "wooing swing voters rather than revving up the base."

Lexington sees little chance that "multimillionaire" Penn will "try to wield Rove-sized influence over a Clinton White House." That's not sensible because Clinton's "closest and smartest political adviser is her husband."

Also, as CEO of B-M, Penn "has far too much on his plate." While Bush made Rove sell his direct mail business to avoid possible conflict of interest, Penn continues to run B-M and manage the Microsoft account. "Conflict of interest, be damned," wrote Lexington.

Penn's weakness: "Umbilical ties to business interests and his visceral distaste for anything that smells of populism."

The left views Penn as "exemplifying everything that is wrong with the Democratic establishment."

Rove fell, according to Lexington, because he tried to change American politics too much. Penn and maybe Clinton's problem is that they want to change too little.

JLM Public Relations is handling PR for the b. michael Fashion House, which is unveiling its spring collection during New York Fashion Week in HSBC’s North American headquarters located across the street from the tents in Bryant Park.

The bank's rotunda lobby and mezzanine will feature b. michael's vision of the "advanced American style." The designer also will officially launch the b. michael "Homme" collection.

Andrew Ireland, executive VP of investment & insurance, at HSBC Premier, says the bank was "lucky to find an American fashion designer who truly understands our luxury customer."

Ann Klein & Assocs. has changed its name to Anne Klein Communications Group to reflect broadened services (branding, new/social media, advertising and market research).

Anne and Jerry Klein also have welcomed COO John Moscatelli and account managers Michael Gross and Christopher Lukach to the ownership team.

Steve Potash, who entered the PR arena 38 years ago, is winding down his firm, Oakland-based Potash & Co., on Sept. 1.

The logistics, container shipping and international business pro will consult on a part-time basis.


New York Area

HWH PR/New Media, New York/Joe Kame Productions Int’l, for a national PR push in support of the joint venture between HDTV guru Joe Kane and The DVD Acquisition and Development Group.

The Bromley Group, New York/The Hush Puppies Company, part of Wolverine Worldwide, to re-position the brand and lead U.S. PR, including media relations, product placement, events and celebrity “seeding.” The firm has also picked up footwear maker GMI.

JLM PR, New York/Phat Fashions, Russell Simmons clothing line, for PR as it launches a new label, XV.

M Booth & Associates, New York/Branding Greenland, public-private tourism and trade initiative. Margie Booth noted Greenland’s Arctic landscape, exotic wildlife, colorful villages and unique cultures.

The Rosen Group, New York/Penny Publications, puzzle magazine publisher; Bond & Bowery, ‘Net portal for antiques, furnishings and art, and Mascot Books, children’s book publisher.

Stanton Crenshaw Comms., New York/Pop!Tech, social network and summit, for media relations and brand awareness, and the Entertainment Software Rating Board, non-profit, self-regulatory body, for online outreach and education for the ESRB’s rating system to parents and other “influencers.”

Thomas PR, Melville, N.Y./Corsair, computer memory and accessories, as AOR for PR.


The Castle Group, Boston/Colonnade Hotel and its restaurant Brasserie Jo, for media relations; Deloitte and Touche, for PR in New England, and King Richard’s Faire, for PR and media relations for the 16th century festival.

Publicity Matters, Washington, D.C./Gilda’s Club of Greater Washington, for media relations and PR support as the group works to raise funds for a D.C. clubhouse named after Gilda Radner. The firm has also re-signed with the Big Apple Circus.

French/West/Vaughan, Raleigh, N.C./WaterPartners Int’l, U.S.-based non-profit working to provide safe drinking water and sanitation to developing countries. FWV is handling PR and marketing comms. on a pro bono basis.


Mulberry Marketing Communications, Chicago/
G.A.P. Adventures, adventure and sustainable travel, for a PR campaign in the U.S., U.K. and Australia.


Morgan Marketing & PR, Irvine, Calif./Mimi’s Cafe, restaurant chain, for PR for five eateries in the Sacramento area.

Edelman, Los Angeles/Pacific Fuel Cell Corp., nano-based components maker for fuel cells, as AOR.

Bailey Gardiner, San Diego/Golden Eagle Farms, thoroughbred horse breeder; San Diego Assn. of Realtors’ Ambassadors Foundation, for its community program, Everyday Heroes; Woodfin Suites Hotels; West Inn & Suites; West Steak Seafood & Spirits, and Lake San Marcos Resort & Country Club.

Internet Edition, August 29, 2007, Page 6


Echo Research, which announced the acquisition of David Michaelson's firm earlier this month, is adding KWHR Network Ltd. to its line-up.

KWHR is the home of former Saatchi & Saatchi research guru Keith Woods-Holder. He was looking for an international partner to “provide value-added services to our existing client base and expand our advanced technology-based solutions,” according to a statement.

KWHR specializes in research, corporate measurement, brand awareness and communications evaluation. It counts Sony, eBay and Vodafone as clients.

The firm, via a deal with PR Newswire, has produced more than 900 MediaSense reports in the financial services, automotive and non-profit categories.
London-based ER has 165 staffers.


VMS has unveiled a digital monitoring network based on speech-to-text technology for capturing FM and AM radio in major markets.

The company is translating more than 10,000 hours per week to supplement its previous live radio monitoring coverage. It called the new network a “dramatic” increase in its radio coverage.

This new network captures both radio commercials and news content.

VMS president Peter Wengryn said clients had asked for more extensive radio monitoring. He said VMS plans to expand its RealTime video monitoring service to include the new radio service “in the near future.”

VMS is also readying the release of new editorial services and analytics this fall.

BRIEFS: Mark Haefeli Productions, the New York-based broadcast PR company, produced a live satellite news conference and re-cap highlight reel for Van Halen and Live Nation to announce VH’s 2007 tour earlier this month. The event was carried live on local and national radio, cable and broadcast networks. ...Doug Serton was promoted to senior associate at executive search firm Heyman Associates in New York. Serton is a former publicist for Life magazine who worked on the agency side at Lime PR.... The Software & Information Industry Assn. (see story on pg. 2) will be offering its Certified Content Rights Manager course in Cleveland and Houston in September. The course teaches aspects of copyright law, content licensing and the proper dissemination of content. LicenseLogic, a content rights management training organization, is presenting the courses Sept. 18 in Cleveland and Sept. 25 in Houston. Cost is $495 for non-members. ...Berkeley, Calif.-based marketing firm Forty Forty has produced an integrated marketing campaign for hybrid products marketer Keen called Hybrid.Stand, a grassroots outreach effort aimed at getting participants to submit ideas to raise awareness of environmental issues. The effort includes a print and online campaign, college tour, documentary, and a contest.



Barry Diller's IAC conglomerate has tapped Euro RSCG vet Jonathan Sanchez as VP and chief communications officer. Sanchez, based in the company's New York headquarters, reports directly to CEO Diller, overseeing global communications for IAC's 60 consumer brands like HSN,,, and Ticketmaster. Sanchez was CCO for Euro RSCG Worldwide and creative director for its PR unit, Euro RSCG Magnet. He was previously board director and consumer business head of Freud Communications, running Unilever, Nike and British Telecom.

Jeff Leopold, senior VP and director of global comms. for WPP’s OgilvyAction unit, to Coyne PR, Parsippany, N.J., as a VP. He was previously senior VP of strategy and planning at Ogilvy PR Worldwide and VP in Hill & Knowlton’s consumer marketing division. Julie Matic, who has worked at Richter Media, The Franklin Mint and Keating & Co., joins as an A/S in its consumer division.

Sara Stern Levin, VP of comms. at 4Kids, to Child’s Play Communications, New York, as a VP. She was previously comms. director at Nickelodeon.

Brian Willinsky, previously with State Street Corp. and Schwartz Communications, to Schneider Associates, Boston, as a senior A/E. Mary Hanley has joined as an A/C.

Mary Ann Chaffee, VP at Glover Park Group, to Spectrum Science Communications, Washington, D.C., as senior VP and managing director of public affairs and health policy.

Patty Dickerson, VP of external affairs, IR and corporate secretary for Ignis Petroleum Group, to VeraSun Energy Corp., Brookings, S.D., as director of IR. She previously ran Energy Direct Comms.

Dan Reid, A/S, Hass MS&L, to Strat@comm, Troy, Mich., as a VP. He handled the GM Service and Parts Operations account at Hass and earlier served as GM Racing comms. manager. Reid was with Campbell and Co. for six years.

Lisa Keim-Carr and Beth Lano join The Firm PR and Marketing, Las Vegas, as senior PR specialists. Keim-Carr was PR director for Tropicana Resort and Casino. Lano was director of PR for the Musicians Union of Las Vegas.

Dawn Wilcox, senior VP for Ogilvy who was GM for the Los Angeles office of Deen+Black PR, which was acquired by Ogilvy PR in 2001, to Allison & Partners, as GM of its L.A. office. Scott Pansky, partner and firm co-founder, held the GM post for more than five years. He turns his focus to emerging offices in Orange County, San Diego, and Phoenix.

Ariel Carpenter to senior VP of digital media and technology, mPRm PR, Los Angeles. Donna Hardwick, VP of marketing and promotions for Porchlight Entertainment, has joined as VP of television. Bill Horn, VP of home entertainment for Ogilvy’s B|W|R unit, joins as VP of home ent’ment.

Kristin Kiltz was promoted to account director for Engage, PR, Alameda, Calif. She’s been with the tech firm for eight years.

Internet Edition, August 29, 2007, Page 7

QUESTIONS FOR CANDIDATES (cont'd from pg. 1)

Newsletter readers are invited to provide their own answers to the questions below by mailing them to NL offices or faxing them with or without comments to 212/689-6432.

1. Should national board and officer posts be decoupled from accreditation and any APR requirements removed from the bylaws (including the nomcom)?
( ) yes ( ) no

2. Should PRS again print the 1,000-page directory of members, PR services, bylaws, etc., or at least allow a discussion of this on the PRS website?
( ) yes ( ) no

3. Should PRS bring back the previous Ethics Code (dropped in 2000 without a vote of the membership) and put teeth in it such as requiring PR pros to reveal sources of communications?
( ) yes ( ) no

4. Should the Society put both the audit and IRS Form 990 on the PRS website in full text like many organizations do?
( ) yes ( ) no

5. Should it defer booking as an asset about six months of dues income to reflect its unearned nature (a practice of most organizations)?
( ) yes ( ) no

6. Should it release the transcripts of the 2005-2006 Assemblies as was the previous policy?
( ) yes ( ) no

7. Should it reveal the 19 delegates who voted for the 2006 Central Mich. governance proposal that would have given more power to the Assembly?
( ) yes ( ) no

8. Should it consider moving some h.q. operations out of New York in view of the $5.2M staff costs (46% of revenues)?
( ) yes ( ) no

9. Should it use its blast e-mail facility to sample member opinions on important issues?
( ) yes ( ) no

10. Should it release the Assembly delegate list early in the year with all delegates reachable by a single e-mail?
( ) yes ( ) no

11. Should the board propose a bylaw change that would bar any director from returning to the board either as a director or as an officer?
( ) yes ( ) no

12. Should PRS let members work at h.q. (only two of the current 55 staffers are members, VP-PR Janet Troy and prof. dev. director Judith Voss?
( ) yes ( ) no

Planning Committee Abolished

A Strategic Planning Committee of two dozen leaders (only a couple allowed from the board) in 1998-99 created the first five-year plan designed to end the practice of each new president setting his or her own agenda and discarding previous agendas.

The SPC urged that the APR rule be removed for board and Assembly posts since 80% of members were barred from running. But the 1999 board headed by Sam Waltz rejected the advice and voiced support for APR.

Thereafter, the SPC declined in importance and in 2005 it disappeared as a separate entity. The 2006 board, with Cheryl Procter-Rogers as president, said that henceforth the board itself would be the SPC.

The concept of an SPC with representatives from throughout the Society and from various levels of PRS, was abandoned.

In other moves that consolidated power in the hands of fewer leaders, the 2004 board took on the role of also being the Foundation board and the 2005 board successfully urged the Assembly to pass a bylaw that would let the five-member executive committee of the board act in place of the full board.


The Princeton Review, which has a host of products aimed at helping prospective college students and says it is used by one-half of all those entering colleges, recommends against the specific study of PR in an essay on "Career: Public Relations" on its website.

The Review, founded in 1981 by Princeton graduate John Katzman but with no connection to Princeton University, says its career essays are constantly updated.

"A broad education is the best preparation" for a career in PR, says the essay, "since PR requires familiarity with a wide variety of topics."

"Though some colleges offer a degree in PR, most industry professionals agree it's unnecessary," says the essay.

The company has just published its 2008 Best 366 Colleges and also its guide to the "Top Party Schools."

Prospective college students can input data to the Review and receive a list of colleges that answer their needs.

The company also offers test preparation for SAT and other tests, receiving about 70% of its income from such services.

Other publications are the Complete Book of Colleges and Parents' Guide to College Life.

PR Person an ‘Image Shaper’

PR people are called "image shapers" in the current essay on PR on the Review's website.

That piece notes that although PR involves dissemination of information, "some view this cynically as 'spin doctoring.'"

An "old saying," says the essay, is that "advertisers lie about the product" and "PR people lie about the company."

Such considerations aside, the essay continues, the PR person must be a "good communicator in print, in person and on the phone. They cultivate and maintain contacts with journalists, set up speaking engagements, write executive speeches and annual reports, respond to inquiries and speak directly to the press on behalf of their clients."

A PR person must be "well versed in pop culture to understand what stories will get the public’s attention," the essay says.

"Any major that teaches you how to read and write intelligently will lay a good foundation for a career in PR," the essay concludes.

It says "many PR people become journalists to exercise more creativity" and "a number of journalists turn to PR for better money.

Internet Edition, August 29, 2007, Page 8




Since WPP ad/PR units set such great store by awards won (8/22 editorial) we contacted Ogilvy Worldwide, whose Ogilvy One unit (direct marketing and digital media) said it won no fewer than 595 awards in 2006. We're seeking a list of those awards.

Our first phone call was to Ogilvy "chief marketing officer" Eleanor Mascheroni whose duties include handling "press and general inquiries."

She was unreachable as were top executives at either the parent Ogilvy or Ogilvy One. A PR staffer then told us awards was a "WPP matter."

WPP CEO Martin Sorrell was e-mailed the question but would not answer it. We also brought up the subject of WPP's debt which was about $4.8 billion at the end of 2006 according to Bloomberg.

WPP does not report "total debt" but only "net debt," subtracting cash on hand. U.S. analysts and CPAs say this is not an acceptable practice. WPP reported "net debt" of 1.214B pounds at the end of 2006 and "average net debt" (even worse say U.S. analysts) up "only" 39M pounds to 1.029B pounds. The pound is worth about $2.

Asked how WPP arrives at its "net debt" figure, Sorrell directed us to the credit rating agencies of Fitch, Standard & Poor's and Moody's and security analyst reports. We're not questioning the credit worthiness of WPP but it seems to us that bank loans of $4.8B in relation to 2006 revenues of $11.75B are quite high. We'd also like to discuss WPP's net tangible assets of -$5.2 billion (because it is carrying $11.6B in good will) and the fact that 2006 payables of $12.1B exceeded receivables of $8.8 billion. Analyst reports of Lehman, Merrill Lynch, Deutsche Bank, and UBS have a "buy" on WPP while Morgan Stanley has an "equal-weight." MS was disappointed that WPP's 4-5% share buybacks were offset by "higher than expected issuance of shares [to insiders] under its various options schemes."

The issue here is U.K. vs. U.S. financial reporting standards. WPP reported overall PR fees grew 5.9% in 2006 not counting acquisitions and were 10.1% of revenues or $1.15B. A gain of 5.9% in revenues is no great shakes when 20 of the 50 largest U.S. independent PR firms documented gains of more than 20% in 2006.

But the prose in the WPP report is highly enthusiastic about the PR units although no dollar or staff totals are given. Hill & Knowlton had its "strongest revenue growth in over six years" while Cohn & Wolfe had "another stellar year with significant growth in both top and bottom lines." GCI had a "strong year" and Ogilvy PR "enjoyed continued global expansion of client engagements throughout 2006." Burson-Marsteller saw "continued improvement in profitability and revenue growth" and Robinson Lerer & Montgomery "turned in excellent financial results."

The profit margin on PR, led by Howard Paster, went from just over 10% "several years ago" to 15%. Reading these glowing reports sans dollar and staff totals is like reading sports pages that have no statistics, i.e., "Baseball Team X had a wonderful day at bat and in the field yesterday, scoring many runs and fielding flawlessly…Tiger Woods played very well, especially his tee shots," etc.

We urge readers to mail or fax us their opinions on key matters facing PR Society candidates (pages 1 & 7 poll). The Society says it represents non-members as well as members and so candidates should be guided by opinions of both non-members and members…the governance of PRS is such that leaders are insulated from the opinions of rank-and-file members. This was illustrated in the 2006 Assembly when not one of the other 110 chapters supported the well-researched and reasoned proposal of Central Michigan to make the Assembly the chief policy-making body of PRS (as it is at the American Medical and American Bar Assns.). The power of the national board and h.q. over chapters was awesome. The board has numerous carrots and sticks to keep the chapters in line…PRS/National Capital led the fight against CM, 2006 chapter president Tracy Schario of George Washington Univ. saying the CM bylaw would "turn PRS governance on its head." Other "Swift Boat" arguments were that insurance would be required on all 300 delegates and that the Assembly already had sufficient powers. As a reward for such loyalty, PRS/NCC has been the only chapter that new COO Bill Murray visited this year…APR remains highly popular at NCC although it has little traction with most members. A total of 391 new APRs of PRS were created in the first three years of the new test or 130 yearly (vs. an average of 259 yearly from 1996-2001)…Sandra Wills Hannon, Ph.D., of The Hannon Group and president of NCC (PRS's biggest chapter with 1,100+ members) is APR as is president-elect Heathere Evans-Keenan of Keenan PR. But none of the other six officers are. However, ten of the 12 Assembly delegates are APR. NCC delegates voted unanimously for decoupling APR from the Assembly in 2004 when that bylaw change was sought by national leadership…the Princeton Review, the leading source of information on colleges for prospective undergrads, has stuck a large harpoon into the PR academic community by, in effect, saying "PR" courses are a waste of time and money (page 7). College is very expensive these days (often $100K+ for four years).

PRS, IABC, NIRI and other groups have not reached out to college students. The Student Society of PRS only has 9,600 members in chapters at 284 colleges although there are 4,000 colleges (2,400 four-year institutions) and eight million undergrads.

The Student Society is 40 this year, created by the 1967 Assembly at the urging of 1967 PRS president Carroll Bateman.

The current trend is to merge ad/PR/journalism courses under one dept. or create new "communications" depts. that include PR and other subjects. "PR" has also practically disappeared from corporations and institutions which prefer "corporate communications."

--Jack O'Dwyer


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